Southwest to cut service and staffing in Atlanta to slash costs

Southwest Airlines The airline plans to cut flights to and from Atlanta next year and lay off more than 300 pilots and flight attendants, according to an internal memo seen by CNBC.

The changes come a day before Southwest’s investor meeting, where executives are expected to outline the airline’s plans to cut costs and boost profits amid growing pressure from activist investor Elliott Investment Management.

Southwest has told employees it has no plans to close its Atlanta crew base, but instead plans to cut up to 200 flight attendants and 140 pilots by the end of the bidding period in April 2025.

The airline does not plan to lay off crew members, but they will likely have to bid to work from other cities.

Southwest Airlines plans to reduce the number of gates in Atlanta from 18 to 11 next year, according to a separate memo from the pilots union.

The airline said it will begin flying to 21 cities from Atlanta starting in April next year, down from 37 cities in March.

“We tried everything we could before making this difficult decision, but we cannot continue to operate at a loss and are forced to make this change to restore profitability,” Southwest said in the memo. “This decision is not a reflection on the performance of our employees, and we are proud of our hospitality team and the work they have done and continue to do on behalf of our customers in Atlanta.”

The union representing Southwest Airlines pilots and flight attendants has slammed the airline for laying off staff and cutting services.

“Southwest management is letting its employees down while simultaneously impacting our customers. Management continues to make decisions without full transparency, sufficient communication with union leadership, and most disturbingly, a lack of focus on the employees who make our airline great,” said Bill Bernal, president of the flight attendants union.

A Southwest spokesman confirmed the changes, saying the airline “continues to optimize our network to meet customer demand, maximize aircraft utilization and maximize revenue opportunities.”

The airline has already withdrawn from several airports and was experimenting with some during the pandemic to focus on more profitable services.

Not only is Southwest facing changing booking patterns and overcapacity in the U.S. market, BoeingThe yet-to-be-certified 737 Max 7 is years behind schedule.

The airline’s chief operating officer, Andrew Watterson, told staff last week that the airline had to make “tough decisions” to boost profits.

The decline of Atlanta, the world’s busiest airport, and Delta Airlines The change at Southwest’s home hub is the latest development for the airline, which in July announced plans to eliminate foldout seats on its planes to create more legroom, marking the airline’s biggest change in more than half a century of aviation operations.

Southwest also announced an expanded schedule on Wednesday, with tickets on sale through June 4. In addition to the planned cuts in Atlanta, the airline said it would increase flights to and from Nashville, Tennessee. It also will begin offering overnight flights from Hawaii starting April 8. These include service from Honolulu to Las Vegas and Phoenix, Kona, Hawaii to Las Vegas and Maui, Hawaii to Las Vegas and Phoenix.